What insurance companies are paying closer attention to inside homes

Home insurers are no longer content to price policies off square footage and ZIP codes alone. As climate losses mount and repair costs climb, companies are digging deeper into what is happening inside the walls, wiring and even Wi‑Fi networks of the homes they cover. I see a clear shift toward more granular scrutiny of interior conditions, technology and daily use, and that is reshaping what it takes to stay insured at a reasonable price.

Instead of a quick drive‑by or a few listing photos, carriers are leaning on detailed inspections, remote imaging and even homeowner‑shot video to decide who gets coverage and on what terms. That closer look is changing everything from how often inspectors show up to which upgrades are rewarded and which outdated systems can trigger a nonrenewal.

The new wave of interior inspections

One of the most striking changes is how routine interior inspections are becoming for ordinary homeowners. Industry advisers are already warning that carriers Expect More Inspections Coming Soon as companies push for more detail on the condition of each Home. The logic is simple: if a carrier can see the actual state of your roof, wiring, plumbing and safety features, it can price risk more precisely and avoid surprises after a claim.

That scrutiny is no longer limited to high‑end properties. In one widely shared account, a Texas homeowner described an insurer requiring an interior review that involved filming and photographing every room, front and back, with the process framed as Like a full walk‑through. At the same time, major brands such as Allstate are investing in data and inspection programs that give underwriters a clearer picture of each property before they commit capital. The result is a market where a clean interior inspection can be as important as a good credit score when it comes to keeping coverage.

What inspectors are actually looking for inside

When an inspector steps through the front door, the checklist is far more specific than “general condition.” Guides for homeowners stress that it helps to walk room by room and review the inside of your home in advance, looking for issues that could raise red flags during an official visit, from loose railings to missing smoke detectors, so you can mitigate your risk ahead of time. Underwriters then use those findings to decide whether to adjust premiums, require repairs or, in some cases, decline coverage altogether.

Large carriers spell out the basics: an inspector may or may not give notice before arriving, and once inside they focus on structural soundness, safety hazards and maintenance issues. Homeowners are told that if they are present, they should be prepared to answer questions about updates and systems, because the visit is designed to help the company understand How the property is built and maintained. Separate consumer explainers add that underwriters will later review the inspector’s report, photos and notes on everything from the roof to the Yard before making a final decision.

High‑value homes and the rise of detailed system checks

The more expensive the property, the more granular the inspection tends to be. Advisers who work with affluent clients urge them to Get organized and Gather documentation on every major system before an inspector arrives. That includes the age and condition of the roof, the plumbing and the HVAC, along with any recent upgrades that could reduce risk or change replacement costs.

Specialized products such as High‑value home insurance, often sold through luxury carriers like Chubb and AIG, lean heavily on these in‑depth inspections to calibrate coverage limits and endorsements. For insurers, a meticulous inventory of finishes, custom features and mechanical systems is the only way to price the risk of rebuilding a multimillion‑dollar property to its original standard after a loss.

Structural red flags and aging infrastructure

Beyond cosmetic wear and tear, inspectors are trained to zero in on structural problems that can signal serious risk. One inspection firm highlights that the biggest red flags in a home inspection are foundation cracks, especially horizontal or wider than 1/4 inch, along with structural movement and roof issues like missing shingles or sagging, describing these as conditions that can quickly escalate into major claims if ignored, which is why they are treated as The biggest red flags. When those defects show up in an inspection report, carriers often respond with repair requirements or coverage limitations.

Electrical systems are under similar scrutiny. New rules in the commercial market show where the residential side may be heading, with some insurers refusing to cover properties that still rely on pre‑1970s electrical panels. Industry notices explain that Insurance companies have made this decision based on the known hazards of these older systems, which have become unreliable and prone to failure, as a way to reduce fire incidents and ensure public safety. For homeowners with aging wiring or panels, that kind of policy shift is a clear signal that upgrades are no longer optional if they want to stay insured.

Climate pressure and the California test case

Climate change is amplifying the stakes of every interior inspection. Analysts tracking 2025 trends note that the effects of climate change remain a significant challenge for the industry, and that traditional tools like FEMA maps are no longer the only predictor of flood risk, as carriers increasingly rely on more granular data to understand how water, wind and fire might affect individual homes, a shift detailed in recent Nov forecasts. That broader pressure is one reason companies are so focused on what is inside the home, from fire‑resistant materials to backup power and drainage systems.

California has become the clearest test case. As more properties move into the state’s last‑resort insurance pool, regulators have approved steep adjustments to keep the system solvent, with the California Department of Insurance signing off on a 29.5 percent rate increase and some zones facing premium adjustments up to 47 percent. Separate consumer guidance in the state urges owners in wildfire‑prone areas to focus on Home Hardening, advising them to Make their properties more wildfire‑resilient by using fire‑resistant materials and clearing vegetation, in hopes of luring more companies back to the market.

Drones, satellites and inspections without a knock on the door

Inspections are no longer limited to clipboards and tape measures. Legal and industry analysts expect Remote sensing technologies, drones and satellite imagery to be used more frequently to assess property damage and risk, a trend that is already reshaping how carriers monitor roofs, yards and outbuildings without ever scheduling a visit, as outlined in recent Remote market briefings. Over the past decade, insurance companies such as Over the years, Allstate, Nationwide and Liberty Mutual have leaned on satellite imagery to gather information on their policyholders with homeowner’s insurance, using aerial views to spot unreported pools, trampolines or roof damage.

In some regions, that technology is moving from theory to controversy. Investigative reporters in Massachusetts have documented cases where insurance companies used drones to inspect homes without the owner’s knowledge, prompting questions about consent and privacy. One report described how Cheryl Fiandaca, the chief investigative reporter and executive editor for WBZ‑TV’s I‑Team, confronted carriers about drone flyovers that led to nonrenewals, with companies defending the practice as a way for Insurance to stay sustainable long term. For homeowners, it means the condition of a roof or deck can be evaluated, and penalized, without anyone ever stepping inside.

Virtual inspections and homeowner‑shot video

Parallel to drones and satellites, virtual inspections are moving from novelty to standard practice. Industry briefings from The Future of Insurance Inspections at Insurance Innovators USA highlight Key Takeaways that Virtual inspections are no longer a “nice to have” but a core tool for carriers, allowing them to collect interior photos and video through smartphone apps. Instead of waiting for an inspector to schedule a visit, policyholders are increasingly asked to walk through their homes on camera, narrating upgrades and documenting potential hazards in real time.

For insurers, this approach cuts costs and speeds up underwriting. For homeowners, it shifts some of the inspection burden onto them, but also offers a chance to showcase improvements that might otherwise be missed. Some of the same technology is being used after losses, with virtual tools helping adjusters evaluate damage more quickly and consistently. That trend dovetails with the broader move toward digital claims handling, where photos, video and metadata are as important as in‑person assessments.

Smart home devices as risk monitors

Inside the home, smart technology is becoming another set of eyes for insurers. Advisers note that Smart home devices can reduce losses by detecting leaks, smoke or intrusion earlier, and that some carriers now offer discounts or perks when customers install connected sensors, cameras or thermostats. One analysis of how technology is reshaping coverage explains that Smart Home Technology and Claims Process improvements can make the claims experience more efficient and Smart data sharing more transparent for homeowners.

In practice, that might mean a water‑shutoff valve that texts both you and your insurer when a pipe bursts, or a monitored smoke detector that automatically logs an incident. Some carriers are experimenting with programs that provide these devices at low or no cost in exchange for access to anonymized data. For policyholders, the trade‑off is clear: more monitoring inside the home in exchange for the possibility of fewer losses and more favorable pricing when a claim does occur.

Short‑term rentals and new regulatory scrutiny

How a home is used is now almost as important as how it is built. The explosion of short‑term rentals has pushed regulators and insurers to rethink risk in properties that double as mini‑hotels. Local rulebooks note that Airbnb and VRBO have transformed the housing market in places like Blue Ridge, prompting local governments to introduce stricter testing and inspection requirements for properties that host paying guests. Those rules often dovetail with insurers’ own demands for more frequent checks on safety systems and occupancy limits.

For owners, that means interior inspections may now include questions about lock systems, fire exits, guest capacity and even how often the property sits vacant between bookings. Carriers want to know whether a home is a primary residence, a part‑time rental or a full‑time investment property, because each pattern carries different risks of damage, liability and wear. Failing to disclose that a home is listed on a platform can lead to denied claims if an incident occurs while guests are staying there.

Who is most likely to embrace inspections

Not every homeowner reacts to this intensified scrutiny the same way. Research on the inspection industry notes that a 2025 study found that homeowners who are college graduates, under 55, and families with children are most likely to pursue proactive inspections and maintenance, in part because they see the long‑term savings and are less afraid of the upfront cost. That demographic tilt matters, because it shapes which neighborhoods end up with better‑documented, better‑maintained housing stock.

At the same time, consumer advocates argue that insurers need to balance their appetite for data with clear communication and support for older or lower‑income owners who may struggle to pay for upgrades flagged in inspection reports. Without that balance, the new inspection regime risks widening gaps in who can access stable, affordable coverage, especially in regions already under climate stress.

Big carriers, new models and what comes next

Behind the scenes, some of the largest players in the market are driving these shifts. State Farm, for example, is not just the largest home insurer in the United States, it is an Illinois‑headquartered giant with tens of millions of policies and accounts, giving it enormous influence over inspection standards and risk models nationwide. When a company of that scale tightens its underwriting or changes how it evaluates interior conditions, competitors often follow.

Regulators are also giving carriers new tools. In California, for instance, California‘s Department of Insurance recently allowed insurers to use catastrophe models instead of traditional risk assessments, enabling premiums that more accurately reflect actuarial risk. Separate industry reports add that Additionally, insurers are becoming more vigilant in their inspections with tools such as satellite imaging and aerial photography to identify properties with a higher likelihood of large, costly claims. Taken together, those changes suggest that what happens inside the home, from wiring to water sensors, will only grow more central to how coverage is priced and who can get it.